Allison Transmission Employees Ratify Four-Year Labor Deal

Deal Involves Second Tentative Agreement Hashed Out by Union, Company
Allison Transmission worker
A transmission in production at Allison's Indianapolis plant. (Karen Kay Marlett Photography)

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Around 1,500 unionized employees at Allison Transmission Holdings on Jan. 16 ratified a revised four-year labor agreement, the United Auto Workers union Local 933 said Jan. 17.

According to a posting on the Local 933 website, a total of 81.8% of votes favored ratifying the deal, which the negotiating committee termed a “fair and equitable agreement.”

Automated transmission specialist Allison and Local 933 reached a tentative agreement on the contract Jan. 5. It was the second time the two sides had reached a tentative deal; about 96% of workers rejected an earlier agreement the day before Thanksgiving.

The revised contract was endorsed by the International UAW and Local 933 leadership.

Among the key elements of the ratified agreement are:

  • Elimination of wage tiers
  • A minimum 19% top rate wage increase over the life of the agreement, except for oilers and material services employees hired on or before Feb. 1, 2008
  • Average wage growth of the life of the agreement compared with current rate for all employees is 38.6%
  • Average wage growth versus the current rate for all production employees is 46.2%
  • Increase in 401(k) match to 8% from 6% for employees hired on or after Feb. 1, 2008
  • Juneteenth is now a holiday

Members of the union remained on the job while talks continued after rejecting the first tentative agreement.

Indianapolis-based Allison operates manufacturing facilities in the United States, Hungary and India, the largest of which is in its hometown.

Allison CEO David Graziosi


“This milestone represents the culmination of dedicated efforts from both our organization and the UAW Local 933, demonstrating our more than 80 years of shared commitment to the well-being of our employees and the success of our company,” David Graziosi, Allison CEO, said in a statement. “We believe that this agreement not only reflects our shared values but also paves the way for a strong future of continued growth.”

After a second half of 2023 in which automakers and suppliers to the industry were increasingly at loggerheads with the UAW, the Allison negotiations saw a less antagonistic approach, with workers remaining on the job.

The head of the UAW supported the revised deal. “Very proud of our members and leadership at Local 933 Allison Transmission, willing to Stand Up, for their fair share of the fruits of their labor! Together we will win!!!” UAW President Shawn Fain wrote Jan. 11 on X.

The ratification covers about 1,600 employees at Allison facilities in Indianapolis and expires on Nov. 14, 2027, the company said Jan. 17.

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